Exchange Income Corp T.EIF

Alternate Symbol(s): T.EIF.DB.J | T.EIF.DB.K | T.EIF.DB.L | T.EIF.DB.M | EIFZF

Industrials Airlines

Exchange Income Corporation is a Canada-based diversified acquisition-oriented company. The Company operates through two segments: Aerospace & Aviation and Manufacturing. The Aerospace & Aviation segment is comprised of three lines of business: Essential Air Services, Aerospace, and Aircraft Sales & Leasing. Its Essential Air Services includes both fixed wing and rotary wing operations. Aerospace includes its vertically integrated aerospace offerings that provide customized and integrated special mission aircraft solutions primarily to governments across the globe. Aircraft Sales & Leasing includes aftermarket aircraft, engine and parts sales and aircraft and engine leasing, along with aircraft management services. The Manufacturing segment is comprised of three lines of business: Environmental Access Solutions, Multi-Storey Window Solutions and Precision Manufacturing & Engineering. The Company also focuses on portable hydronic (glycol-based) climate-controlled equipment.

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Exchange Income Corp

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Post by retiredcfon May 08, 2024 8:07am

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Post# 36028414

RBC

May 7, 2024

Exchange Income Corporation

Q1 in line; diversification on full display as Aviation offsets near-term Manufacturing headwinds

TSX: EIF | CAD 46.38 | Outperform | Price Target CAD 65.00

Sentiment: Neutral

Our view: EIF today reported Q1 results that were in line with consensus expectations. The company also maintained its 2024 EBITDA guidance, and we therefore view the results as neutral to sentiment. On full display however was the company's diversified business model as robust demand in Aviation offset meaningful near-term headwinds at Northern Mat. We also flag that the Manufacturing segment continues to see a number of inquiries and interest from existing and new customers, which we believe are related to Northern Mat and Windows and which we see as pointing to significant longer-term growth at the company. Key focus for us tomorrow on the call will be an update on the outlook for Northern Mat and for Regional One, which management flagged is benefiting from a recovery in leasing.

Q1/24 results in line with consensus expectations. EIF reported Q1/24 adjusted EBITDA of $111MM, in line with consensus $111M (RBCe: $107MM). See Exhibit 1.

Aviation EBITDA above. Aviation EBITDA of $94MM was ahead of our $82MM estimate.
Manufacturing EBITDA below. Manufacturing EBITDA of $27MM was below our $32MM estimate.
2024 guidance maintained. Management reaffirmed 2024 guidance for adjusted EBITDA of $600–635MM, which brackets consensus $623MM (RBCe: $624MM). See Exhibit 2.

Conference call

• May 8, at 8:30AM ET
• Dial-in: 1-888-886-7786